9:42 am, January 8, 2013
USED car values in December 2012 set a ‘new industry high’, BCA have suggested.
Across December, BCA says values for used vehicles averaged £7,361 – a rise of 14.6 per cent against November, and ‘the highest monthly figure on record’. Year on year figures were also impressive – December 2012 ahead by 14.1 per cent, or around £900.
However, that’s not to say the rises are without an obvious cause. As the pre-Christmas period hits, dealer part-exchange volumes fell – and so there was naturally a higher proportion of high value fleet and lease vehicles hitting auction rooms.
Alongside that, BCA suggests, professional buyers were more active in December – all competing to stock up their forecourts for the surging New Year period.
Still, average values for fleet and lease, dealer part-exchange and nearly-new vehicles were all good – with year-on-year values remaining well ahead of December 2011.
‘December typically records an uplift in month-on-month values and this year was no exception,’ commented BCA communications director Tony Gannon. ‘In fact, records were established in 2010 and 2011, so it should come as no surprise that December 2012 would set a new benchmark value, particularly when factoring in the general lack of stock in the marketplace.
‘Overall, prices remain strong despite demand being relatively flat and the lack of stock has generally meant good returns for business sellers. This stock shortage is a long term issue and is unlikely to change until new car volumes pick up significantly and the economy improves enough to generate a bigger churn of vehicles in the marketplace.
‘Currently there appears to be little on the horizon that is going to change those wider market conditions, but with the continuing economic pressures and reduced consumer confidence we should not expect to see the same robust value growth in 2013 that was experienced in 2012.’
